Sareum is sharing in a $2m mile-stone payment stemming from its Chk1 inhibitor cancer drug candidate.

The payment has come from Sierra Oncology following the transfer of two ongoing Phase 1 clinical trials to the American company. Sareum will share the cash with its co-investment partner, the CRT Pioneer Fund, and as such will receive $550,000.

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Further payments in the aggregate amount of up to US$319.5 million may additionally become payable upon achievement of certain development, regulatory and commercial milestones. Sierra Oncology will also pay high single to low double digit royalties on the net sales of any product successfully developed.

Sareum is also set to receive the unspent portion of an $797,500 it invested in trial funding in December 2015. This is thought to be worth $200,000.

Dr Tim Mitchell, CEO of Sareum, said: "We are delighted that the first milestone event from this agreement has been reached. This is a useful addition to our cash position, following the receipt of £1.5m as our share of the $7m up-front payment announced in September."